Can be used as fiber food to help in preventing constipation; as fiber food for patients with diabetes and moderately raised cholesterol levels

Popular breads & cakes that can be fortified with high- protein coconut flour:

10%:

Raisin bread

Ensaymada

Monay

Loaf bread

Pinagong

Pan de sal

Nutribun

10-40%:

Chiffon cake

Cheese cake

Mocha-chiffon cake

Orange-chiffon cake

Acceptable levels of coconut flour (high-fiber) as an additive in food products

Baked Products:

Multi-grain bread – 10%

Chocolate chips – 38%

Chocolate crinkles – 21%

Oatmeal cookies – 25%

Cinnamon bread – 10%

Macaroons – 25%

Hotcake – 15%

Lemon poppyseed – 15%

Snack Foods:

Multi-grain chips – 10%

Polvoron – 15%

Kropek – 10%

Extruded Products:

Canton noodles – 10%

MARKET ASPECTS

A. Coconut Flour – Market demand of coconut flour

Wheat importation (source: US Wheat Association):

1997 – 2,256,766 MT

1999 – 2,332,487 MT

2000 – 2,850,420 MT

2002 – 3,084,410 MT

2003 – 3,124,595 MT

If 5% of wheat flour will be substituted with coconut flour the potential market demand of high protein coco flour is 156,230 MT annually. This will reduce our dollar importation of wheat.

Major Wheat Based Products

Pan de Sal 19%

Loaf bread 18%

Buns and rolls 6%

Other breads 4%

Noodles 21%

Pasta 1%

Crackers/ Cookies 18%

Cakes/ pies/ pastries 13%

Total 100.00%

Price (Local):

High Protein Coco FlourÃ¢â‚¬â€œ 25 / kg

High Fiber, Low Fat Coco Flour Ã¢â‚¬â€œ 90/ kg

Supply:

Peter Paul Philippine Corporation (high-protein) – 30 MT / mo.

Freyvonne Milling Services (high-protein) – 4MT / mo.

Sirawan Food Corporation (high-fiber) – 1MT / mo.

Total 11 MT / mo

Prospects

Availability of convenient alternatives like bread, noodles, etc.

Increase demand for healthy breads such as oatmeal, wheat, rye, multi-grain and others as more and more consumers are becoming health conscious

Specialty breads like high fiber white bread are on the rise. People are becoming more conscious on quality and nutritional contents.

The industry benefits from the government campaign on fortification of products like bread, salt, noodles, sardines and margarine.

There is growing consumer base of 7.6 million which offer bright prospects on the medium term despite some short term market constraints.

The feeding program to be spearheaded by the DA, NNC and Dep-Ed, if proven successful will create a market for high-protein coconut flour and encourage existing VCO producers to process further their by-products.

The spread of coffee shops like Starbucks, Coffee California, Seattle’s Best Coffee, etc. is expected to increase consumption of bread, a complement of coffee.

The expansion of specialty bakeshops in other urban centers outside Manila.

Market Potential of Coco Flour

The National Supplemental Feeding Program (“Healthier Children, Wealthy Farmers Program”) is a large market for high-protein coconut flour.

The Department of Education has 167,000 grade 1 and pre-school children. The Department of Social Welfare and Services Department has 60,000 3-5 year old pre-schoolers in day care centers in 4th, 5th, and 6th class municipalities. At 120 days feeding regimen, this will require 28 tons of coconut flour for the production of “coco pan de sal”. The program is scheduled to start this August, 3005 and will be continued after the 120 days feeding once the local government units support the program for sustainability. The coco pan de sal will be fed together with dairy milk to be able to provide 1/3 of the daily RENI (Recommended Energy and Nutrient Intake).

B. Virgin Coconut Oil

Market Demand of VCO

2001 – 1.8 MT = $19,810

2002 – 19.1 MT = $91,610

2003 – 113 MT = $406,580

2004 – 120 MT = $422,856

Price

Local price of VCO ranges from P600 – P1,000 per liter

Export price of VCo ranges from $ 3,134 / MT – 2004

Market Prospects

Consumer demand for functional foods and organic products

Acceptance of herbal/natural medicine as alternative products to complement, if not replace, synthetic drugs.

Increasing demand for safe, efficacious and quality natural therapeutic products considering burgeoning world population & high cost of drugs.

Growing awareness on the value of food and nutrition in preventing diseases.

Aging global population.

Increasing interest in natural products, including beauty product line